Small-cap stocks traded in and out of negative territory Friday, staying below the larger indices.

One of the day's big winners, ABX Air ( ABXA) took off in spite of disappointing third-quarter results. The Wilmington, Ohio-based air-cargo firm reported earnings of $2.4 million, or 4 cents a share, compared to $6.6 million, or 11 cents a share, in the year-ago quarter, falling short of one analyst's estimate of 8 cents a share, according to Thomson Financial. The disappointing quarter was outweighed by news that ABX agreed to settle by arbitrage a dispute with primary client DHL Global over allocation of overhead expenses and would receive $8.8 million in previously withheld budgeted expense reimbursements from DHL. ABX shares were rising 6.5% to $4.25.

Discovery Laboratories ( DSCO) jumped 11.5% to $2.53 as the company announced Food and Drug Administration declared the company's application complete for Surfaxin, a proposed treatment for premature infants with respiratory distress syndrome. The FDA has set May 1, 2008, as its target date to complete its review of the Discovery's new-drug application (NDA) for Surfaxin.

On the losing side, patent technologies company Acacia Research ( ACTG - Get Report) gave up 33.6% to $11.38 after losing a patent infringement lawsuit against Microsoft ( MSFT). A Texas court found the The patent-in-suit was "not infringed and invalid."

The9 ( NCTY), a Shanghai-based developer of online games, plummeted 33% to $21.10 after posting disappointing third-quarter results. Earnings fell by nearly half to $5.1 million, or 17 cents a share, from 2006. Analysts expected EPS of 21 cents.

Chordiant Software ( CHRD) slipped 21% to $9.11. The company posted in-line fiscal fourth-quarter non-GAAP earnings of 18 cents a share, up from a loss of 22 cents a year ago. One analyst, Tom Ernst Jr. from Deutsche Bank, called Chordant's fiscal 2008 guidance "conservative," and another, J. Derrick Wood from Pacific Growth Equities, called the quarter "slightly disappointing," according to an Associated Press report.

Telecom operator Virgin Mobile ( VM) tumbled 16% to $9.05 after reporting a pro forma loss of $7.3 million, or 15 cents a share, for the third quarter, vs. a loss of $5 million, or 10 cents a share, in 2006. Two analysts polled by Thomson Financial had predicted earnings of $50,000, or 0 cents a share.